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Exploring Factors AffectCustomers Buying Behavior and

Satisfaction:

A Study

On

Real Estate Firms Operating in theGreater Dhaka Region

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EXPLORING FACTORS AFFECT

CUSTOMERS BUYING BEHAVIOR AND

SATISFACTION: A STUDY ON REAL ESTATE

FIRMS OPERATING IN THE GREATERDHAKA REGION

Internship Research Study

(Submitted in partial fulfillment of the requirements of BBA Program)

Submitted by:

Syed Ahsan Pervez

Students ID: 090306

Supervised by:

Mehedi Hasan Md. Hefzur Rahman

Professor

Submitted to:

Coordinator

Internship & Placement Committee

Business Administration Discipline

Management & Business Administration School

Khulna University, Khulna

Date of Submission: March 24, 2014

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March 24, 2014

Coordinator

Internship & Placement Committee


Khulna University, Khulna

Subject: Submission of Internship Research Study

Dear Sir,

Enclosed is the research study on the Exploring Factors Affect Customers

Buying Behavior and Satisfaction: A Study on Real Estate F irms Operating in

the Greater Dhaka Regionwhich is submitted to you as an obligatory part of the

fulfillment of the internship/research program. This study was conducted to

identify customers preference and approach towards buying flat or apartments

which constitute the real estate market of Dhaka region.

Since the very onset I have collected information with utmost sincerity and tried

to interpret the collected information appropriately. I have devoted my effort to

make the research representing the fact. I am available for any further assistance

in interpretation or clarification.

Sincerely yours,

_____________________________

Syed Ahsan Pervez

Students ID # 090306


Approved By:

___________________________

Mehedi Hasan Md. Hefzur Rahman

Professor


Khulna University

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Acknowledgement

First of all, I express my heartfelt gratitude to Almighty Allah who has given me

the opportunity of successful completion of this research.

I would like to express my gratitude and appreciation to the following people for

making this research study possible. I consider it a pleasure and privilege to pay

regards and thanks to Mehedi Hasan Md. Hefzur Rahman, Professor, Khulna

University for his kind guidance and encouragement in the whole process of

writing this research paper. I really appreciate his patience; tolerance and his

assistance in making this study a reality. My gratitude also goes to all the other

honorable faculties of Business Administration Discipline, Khulna University, for

their cordial assistance in completing this research. I appreciate their support, co-

operation and teachings.

A word of thanks is also extended to all my seniors, juniors and classmates who

have helped me in many ways, for all their support, tutoring and encouragement.

Thanks are also due to all the respondents for cooperating in the collection of the

primary data. I would like to express my thanks to all of them for helping me in

getting the opportunity to complete my internship research.

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v | P a g e

Executive SummaryBangladesh is highly populated area. According to World Bank, in 2011 1174.33

people lived in per sq. kilometer in Bangladesh. Dhaka is the capital city of the

country which went through a massive urbanization and development. Thus most

of the people in the country try to relocate them in Dhaka city. As a result Dhaka

city has become even more densely populated area. Bangladesh already has high

population growth and scarcity of land problem. To counter the problem the best

solution is real estate development and high rise buildings. Upon this need of real

estate products, real estate business has seen tremendous growth in the industry in

last 10 years though mostly concentrated on Dhaka. But as the time passes, this

market is also developing in the adjacent areas of Dhaka city and in Chittagong

and Sylhet. Despite of these developments in the industry, there is no formal study

on the customers. Companies are operating based on their intuition of customers

demand. They dont provide what the customers want whereas the customers get

only what they provide. Still there are some scopes of customization but only in

interior decoration not in other segments. I tried to cover different demographics

of the population. Like sample are selected based on their current residence

location, their occupation and income level. I survey a total of 300 respondents.

Most of the people are not truly satisfied with their current residence location.

They prefer to relocate themselves mostly in Uttara and Dhanmondi. Some of the

customers also prefer Malibag, Mogbazar and Kakrail. We tried to look into

customers expectation and satisfaction level on this research. We have seen that

customers put high importance in interior and exterior decoration, even more

people want better utility services. But they are not that much concern about

material quality or financing options. They put medium importance in location of

the apartment and the brand value of the developer. Lastly in the satisfaction level

measurement, it tells that the customers are fully satisfied and according to them

the companies are providing everything they need them to. The satisfaction factors

are correlated with each other, which suggest that customers are satisfied with

what the companies are providing them. It was expected that people will not be

happy with their flat or their developers. But surprisingly after research, it portrays

a different picture. People are very much satisfied with what they are getting. In

aspects of material quality, developers honesty about different facilities of the flatand pricing customers shows satisfaction.

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Table of Content

Executive Summary V

INTRODUCTION

1.1 Background of the Study 08

1.2 Objective of the Study 09

1.3 Scope of the Study 10

1.4 Limitations of the Study 10

THEORITICAL FRAMEWORK & LITERATURE REVIEW

2.1 Real Estate Industry 11

2.2 Real estate Industry in Bangladesh

2.2.1 History of Real Estate in Bangladesh

2.2.2 Current Scenario of Real Estate Industry

2.2.3 Real Estate Industry in Dhaka

11

11

13

14

2.3 Customers Profile Of Real Estate Market 17

2.4 Market Segmentation 19

2.5 Decision Making Process of Real Estate 21

METHODOLOGY

3.1 Research Design 26

3.2 Sources of Data 26

3.3

3.4

3.5

Sample Selection

Data Collection

Data Analysis

26

27

27

ANALYSIS& FINDINGS

4.1 Demographic Analysis

4.1.1Demographic Analysis Based on Location4.1.2 Demographic Analysis Based on Age

4.1.3 Demographic Analysis Based on Occupation

4.1.4 Demographic Analysis Based on Salary

29

2930

31

32

4.2 Statistical Analysis

4.2.1Cross Tabulation Analysis of Age with Flat size

4.2.2 Cross Tabulation Analysis of Occupation with

Flat/Land

4.2.3 Cross Tabulation Analysis of Occupation with

Financing option

4.2.4 Frequency Analysis of Governing Factor4.2.5 Frequency Analysis of Preferable Locations

32

33

34

35

3536

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4.2.6 Mean Calculation of Purchase factors

4.2.7 Frequency Analysis of site Visit

4.2.8 Correlation of Satisfaction Factors

4.2.9 Correlation of Satisfaction Factors With real

Estate Company Performance

37

41

42

43

4.3 Findings 44

CONCLUSIONS

REFERENCES

45

APPENDIX

Questionnaire

Tables and Figures

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INTRODUCTION

The housing sector plays vital roles both in the context of the economy of

Bangladesh and serving the fundamental human right of shelter which actually

call for the awareness and analysis regarding various pertinent issues involving

the sector. These analyses include the size and contribution of the housing sector

to the economy, current market structure and trends in this sector, regulatory

framework governing this sector, various government policies and associated

challenges arising from recent economic crises and policy changes. Without

adequate information the players in this sector cannot plan and prepare themselves

for the challenges and opportunities. Besides, the government cannot make

appropriate policy interventions to make an appropriate balance between the

facilitation and regulation for the betterment of both this sector and its

contribution to the overall economy. Availability of proper information is also

necessary from the perspective of the investors so that they can make efficient

investment decisions. This is very vital as the sector grows to its matured phase,

investors has to be well aware of the facts and status of the industry. Various

linkage industries, particularly those who depend solely or heavily on the housingsector need accurate information, facts and forecasts to safeguard their interests.

And last but not the least consumers cannot make the best use of their scarce

savings for their accommodation if they do not have proper information of this

sector. Thus, availability of more market related information will define, with

greater accuracy, the nature of the future development required in this sector.

Despite the significant growth of the housing sector in the recent past, good

research dealing with the development of this sector is lacking. This is

compounded by the fact that there is a lack of adequate statistical information.

1.1Background of the study

Bangladesh is a small country with a very low per capita income. Here people still

struggle for the basic needs fulfillment. When still lots of people struggle to have

a minimum shelter, real estate products that is assumed to be very expensive, is

kind of extra luxury to the majority of the mass population. However, real estate

sector has been developed and it is growing with a good pace along with a gradual

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increase of its contribution in total GDP. Investments in this sector have been

increasing over time and competition has becoming sharper because of the

increased number of firms as well as stakeholders awareness. Government is

trying to build a proper framework for this business sector.

People who are in the high income brackets are the main customers of these real

estate products. But day by day involvements of the middle class in the society is

increasing. In this circumstance, government is trying to involve low income

people too by suggesting the real estate companies to plan for housing for these

people. As the involvement increases question of quality and satisfaction also

comes to the scenario.

The background of this research is those factors which lead the development of

the real estate business in Bangladesh along with an analysis of the market. At the

same time how people think about the quality of the real estate products are also

considered.

1.2 Objectives of the study

The broad objective of this study is to do a widespread research on the housing

sector of Dhaka city and around Dhaka city in Bangladesh, i.e. to gather and

compile all possible relevant data regarding the housing sector of Dhaka and to

provide accurate market related information for the decision makers. To sum up

the main objective of the research is to provide an insight for the developer

companies about customers preference according to target market, key decision

influencing factors, customers observation etc. so that they can function better in

the market and live up to the expectation of customers.

The specific objectives of this are:

To determine customers preferable factors in buying a flat/apartment.

Find customers desired financing options according to their profession.

To identify customers point of satisfaction during the period construction.

To identify the level of customers satisfaction with their apartments and

its developers.

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1.3 Scope of the study

The geographic scope of this research is confined within greater Dhaka region.

For the demand side, of the study representative samples were drawn from the

existing and potential consumers within greater Dhaka region.

1.4 Limitations of the study

While conducting the study, the research team faced several critical issues that

limited the scope of the research to some extent. Some of the limitations of this

study are as follows:

Unavailability of information was a major obstacle especially from

government organizations like NBR (National Board of Revenue), BBS(Bangladesh Board of Statistics) etc.

Scenario of the developer companies outside Dhaka was not covered in

this report. Also only the customers within the city were considered in the

sampling frame, so it may not reflect the attitude of customers outside the

Dhaka city.

For the consumer survey, probabilistic sampling methods were not

selected because the complete sampling frame for the target populationwas not available which was necessary to apply the usual probabilistic

sampling techniques. Besides, limited time and budget also guided the

researchers to go for non-probabilistic methods.

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THEORETICALFRAMEWORKAND

LITERARTUREREVIEW

2.1 Real Estate Industry

Real estate is "property consisting of land and the buildings on it, along with its

natural resources such as crops, minerals, or water; immovable property of this

nature; an interest vested in this; an item of real property; buildings or housing in

general. Also: the business of real estate; the profession of buying, selling, or

renting land, buildings or housing."

Land plus anything permanently fixed to it, including buildings, sheds and other

items attached to the structure. Although, media often refers to the "real estate

market" from the perspective of residential living, real estate can be grouped into

three broad categories based on its use: residential, commercial and industrial.

Examples of real estate include undeveloped land, houses, condominiums,

townhomes, office buildings, retail store buildings and factories.

Developers buy land, finance real estate deals, build or have builders build

projects, create, imagine, control and orchestrate the process of development from

the beginning to end. Developers usually take the greatest risk in the creation or

renovation of real estateand receive the greatest rewards. Typically, developers

purchase a tract of land, determine the marketing of the property, develop the

building program and design, obtain the necessary public approval and financing,

build the structure, and lease, manage, and ultimately sell it. Developers work

with many different counterparts along each step of this process, including

architects, city planners, engineers, surveyors, inspectors, contractors, leasing

agents and more.

2.2 Real Estate Industry in Bangladesh

2.2.1 History of Real Estate in Bangladesh

Bangladesh was an under-developed country historically. In recent years it

became a developing country. As a developing country it has the burden of

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massive population growth, which has been increasing over the year in last three

decades. Due to this over population, it has the lowest ratio of land to people.

Though it was not like this, if we go back a century, when people had sufficient

land per person to fulfill their need. This shortage of land created the residence

problem for the people. To overcome this problem, Bangladesh needed rapid

urbanization. Though a bit late, but still rapid urbanization were initiated in the

country. Still there were some problems with this urbanization process. The major

problem was concentrated urbanization. As the urbanization were concentrated

primarily in Dhaka and later spread out towards Chittagong and Sylhet. Due to

this concentration over-urbanization took place.

This urbanization is one of the key factors, why real estate business boomed in

Bangladesh in recent years. There was no formal real estate industry in

Bangladesh in pre liberation period. History if Bangladeshs real estate industry

started in 1970 with only five companies. But still it was not flourished till late

80s. In 1988 there were total 42 companies. Now-a-days there are 1500

companies who are operating in this industry though only 1081 of them are

registered in REHAB (Real Estate and Housing Association of Bangladesh). As

mentioned above, due to concentrated urbanization most of these companies areoperating around Dhaka city. The major reasons of this much concentration of

urbanization in Dhaka city are-

Rapid Population growth in the city by both local and migrated population

Lack of unused lands in the city

Very pricey lands in the city

Scarcity of residential area due to large area occupied by government

organizations like Dhaka University, Dhaka Cantonment etc.

Land owners motive or incapability to generated income from their land

without or by investing in it.

Problem arise from purchasing lands due to lack of knowledge about Acts

and papers

Increasing number of single family rather than joint family

Assurance of quality as most of the time the purchasers are not aware of

the details about construction.(Dewri, 2012)

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2.2.2 Current Scenario of Real Estate Industry

The real estate market has flourished in Bangladesh in last decade. The boom in

this market came in the early 2000s, when people started to move to Dhaka with

a great number. According to Bangladesh Bureau of Statistics, currently 29% of

the population lives in urban area and the number will be 35% by the end of 2020.

In number, that is almost 75 million people and most of these people will try to

relocate themselves in Dhaka which will eventually increase the problem of

residence scarcity. The rate of urbanization in Dhaka is 5%-6% per annum. If the

population and urbanization grows at this rate, in next 20 years people will need 4

million new houses to accommodate themselves in Dhaka city. Currently annual

demand for new household varies from 0.3 million to 0.55 million, which is

600,000 to 800,000 units (BBS, 2011).

Currently Real Estate industry is one of those few growing industry which not

only has the great potentiality but also has a greater return over the year.

According to REHAB the existing companies has provided over 1000000

apartments in last decades. Particularly in Dhaka this demand is estimated to be

60,000 units of real estate apartments combined with 200,000 units of replacement

plus backlogs. The demand trend of apartments in Dhaka city can be realized in

following graph:

Fig:Number of apartments developed by years.

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Thus there exists a high demand of plot and flat units. This huge and unfulfilled

demand is highly attractive for the investors. The Real Estate and Housing

Association of Bangladesh (REHAB) is the sole organization of the real estate

agents, developers and builders. It had more than 450 members registered in 2009.

Moreover, around 350 non-registered real estate developers are doing business in

this sector. According to REHAB they are currently supplying only around 8,000

to 10,000 units of housing apartments. (Dewari, 2012)

2.2.3 Real estate industry in Dhaka city and Surroundings areas

Real estate market in Dhaka

Dhaka represents a composite urban form developed through ages. The pattern of

aerial expansion and the urban form of Dhaka have been dominated largely by the

physical configuration of the landscape in and around the city. The city has been

spontaneously developed without any rigid planning proposal. The growing city

seems to have exhibited a series of informal and organic spatial patterns. Within

this framework, some parts of the city have been deliberately planned as

residential areas to provide the citizen with civic facilities. In such planned

schemes, land is subdivided into plot and infrastructure is constructed following

conscious design by the authority in which land use is defined according to the

master plan. In contrast, major part of the city has been developed organically in

which land is subdivided through private initiative, roads are laid to serve their

need without any approved plan. In process of time, these spontaneously

developed organic areas start operating as part of the whole city with continuous

adjustments. On the other hand, the planned areas, in spite of several controls,

have undergone

Morphological changes in land use pattern to adapt to the community need with

the passage of time. Further, due to the weakness in planning rules and zoning

policy, non-residential functions invaded into the planned residential area to meet

the demand of the growing population. Authority sometimes amended the rules to

accommodate such changes, which in turn affected the character of the planned

residential areas. As a result, the planned residential areas have changed into a

mixed land use pattern and transformed into an unplanned state in relation to their

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physical layout (Khan 2008). Due to various factors, including absence of an

urbanization policy or a human settlement policy, urban growth and urban

development in Bangladesh is basically Dhaka oriented. (Dewari, 2012)

Real Estate in Narayangonj

In the east part of the city all the areas got huge pace of urbanization in the last

couples of years and lots of real estate firms are working there to meet the rising

demand for houses in the areas like Demra, Jatrabari etc. The focus of the real

estate firms is no more limited in these areas; rather they are already inside of the

border districts like Narayanganj. Though in Munshiganj they started newly, the

town areas of Narayanganaj is almost like another region of Dhaka with lots of

real estate activities. This happened once again due to the rapid urbanizations and

developments of communication systems in between the districts. Narayanganj is

only 30-40 minutes away by bus or 20-25 minutes away by train. Therefore

jobholders come to Dhaka in the morning and get back home in the evening very

easily.

Narayanganj was started developing as industrial belt of the city as well as the

residential area. But eventually it became the industrial area, which has driven the

residential development into a corner. So as a result Narayanganj became a

industrial area of the city, which created more scarcity for residence of population.

This scarcity in turn initiated the need for a new area to be developed as

residential area.

Real Estate in Gazipur

Narayanganj is the first industrial belt which is fairly close to Dhaka. But due to

massive industrialization later there were not any free space for residential area.

So the next feasible area was Gazipur, which is also close and enough space for

both industries and residential area. In time when the people realize that

narayanganj is full, some of the industries were starting operation in Gazipur. The

major leap forward for this city took place in last 10 years, as it presented itself as

the next industrial area of Bangladesh. In the last 10 years, a lot of factories

located themselves in Gazipur belt. These factories includes garments factory,Spinning mills, different manufacturing factory like fu-wang foods, kollol group,

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Nestle Bangladesh Limited, Square group etc. After Narayanganj, Gazipur is the

closest area of Dhaka which has the infrastructure, available land and opportunity

to be industrialized. As the number of industries is increasing in Gazipur day to

day, more and more people are looking for housing facilities in this area. Some of

them are looking permanent residence and some are looking for temporary. In

either case, peoples need for housing facilities is getting greater each day which

in turn generating rapid growth for real estate in this city. If we look back in the

history of this city, before 1947 most of the land of this city was owned by Hindu

religion followers, even the lord of the area was a Hindu follower. But after the

separation in 1947, a lot of these people flee from the country in different areas

mostly in India. The Muslims from the local residence and also in some cases

Muslims from adjacent areas like Mymenshing, took the chance and forcefully

seized these lands. And later in 1953, when the local govt. conducted the

nationwide survey, they put their name as the owner of that land. Same thing

happen after the liberation war in 1971, during the survey in 1972. So we can say

that historically people around this city had a lot of land at their disposal. For two

generations, these land owners did not wanted to sell their lands as most of them

were farmers. But the third generation was different from their ancestors, they did

not become farmers and also not very educated of business minded, so the main

income source was selling lands, which takes us to the beginning of twenty fast

centuries. As the previous generations did not relied on the lands, compared to

other area land ownership was not changed in this city that much. Thats why the

price was still very low around this part of the country. Two things took place

around the same time, other suitable areas for industry around Dhaka were almost

full and the third generation started to sell their lands at a very low price. Because

of the cheap land price in this area which is situated so close to Dhaka, it attracted

different types of buyers to Gazipur. These buyers includes industrialists looking

for land to start new factory, cream class of the society who want to own a second

home away from the city, people who have ideal money etc. Now the industries

are already flourishing in the area, which generating peoples residential need

around this area. Also as the residential facility in Dhaka is getting expensive and

Gazipur is fairly close to Dhaka with very good communication system with the

capital, more and more people trying to locate them in gazipur. Yet major

developer companies of the country are not active in the local real estate market.

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There are five real estate companies who are the only major player of the area.

Gazipur Upa-shar Limited and Gazipur Properties limited is the main two player

of the market. Gazipur Upa-shar Limited is the sole company who deals with both

lands and Apartments. Other than this company there are some other organization

who are in real estate business and deals with land but they are not registered yet.

The industry is mainly spreading in the outskirts of the main city area. Islampur,

Rajabari, Monipur, Kaliakoyer are the most demanding areas. (Uddin, 2014)

2.3 Customers Profile of Real Estate Market

Previously the major customers of real estate industry were the top class citizen of

the country, but the recent government initiative of providing the residential

facility to middle class people, banks loaning facility and different companys

installment option has provided the opportunity to buy residential apartments and

lands for middle class people as well. We can segment the main customer

segments based on some factors like education, income level, social status, current

residence, age etc. customers requirements about a apartments differs depending

these factors.

Income level: Bangladesh government has taken initiative to make

available apartments for middle class people. But still there is clear line

about which income level customers prefer which type of apartments. Like

high income level people who make more than 1.5lac a month and also has

some assets on their own generally prefer apartments between 1800sqft-

2200sqft apartments. On the other hand people have income level between

1 lac to 1.5 lac looks for 1200sqft- 1800sqft apartments. But people in the

lower income level than this normally look for a apartments with enough

space to accommodate his/her whole family. Still age is very crucial

factor, which can change the income level perception about apartment

requirements.

Age: The average life expectancy in Bangladesh is 65. 01 year (BBS 2007)

while the expectancy is 64.5 & 65.7 for male & female respectively.

Among the total population 32.9% falls in below 14 years age group,63.6% falls in 14-64 years age group, and 3.5% falls in the 65 years and

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over age group (BBS, 2007).The main targeted customers are between 25-

64 years age group which is a little lower that 63.6% of total population of

Bangladesh. Also in some cases we can see that senior citizen who is in

the 65 years and above age group are customers of real estate. Primarily

customers in age group of 25-35 look for apartments between 750sqft-

1000sqft, as they have small family with two-three family members. The

next age group who are 35-60 years old, look for the largest apartments

because of the growing family members. But people who are aged more

than 60 years old also look for small apartments as by than most of the

children are away home or in their own resident so the old couple doesnt

need very big apartments. This requirement of apartments based on age

can be different if the customers are from different social class.

(Wikipedia, 2014)

Social Class: Generally the cream class of the society was the sole

customer of real estate market but we stated before currently the middle

class has also became customer of the industry. Due to belonging in

different social class, the needs of customers are highly influenced by their

social class. Like the customers from the high society class who are

between 25-30 years of age looks for condo or studio apartments. On the

other hand people who are member of middle class though being in the

second age group (35-60 years) search for small apartments as they cannot

afford bigger apartments. In recent times customers who are in both high

class and third age group (60 and above) buys adjacent apartments for

them and their children.

Current residence: Current residence plays a vital role in deciding the

type of apartments or residence. People who live in the city in their own

house require a second home to use as garden house away from the city.

But people from rural area looks for an apartment in the city despite of the

size of the apartment. That is one of the main reasons why developers tries

to build single stories or double storied building with larger area with the

building outside the city and congested apartments in the city.

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Other than these factors there are some other factors which influence customers

requirements about their resident like family cycle, profession etc. The most

mentionable is family life cycle. Like customers in full nest stage requires larger

apartments than young couple and empty nest.

2.4 Market Segmentation:

Real estate market in Dhaka has flourished all over the town. But still there are

some variations between locations. These variations are mainly in price and size

of flats. We can segment the market of Dhaka based on these criteria and

locations.

1. Gulshan, Banani, Baridhara: These three are the most pose area of

Dhaka. Flat size in these areas is more than 2000sqft. which is higher than

any other area ofDhaka. Also the price range of these areas is higher than

other areas. In banana price per sqft flat range from BDT 15,000- BDT

20,000. In Gulshan it is from BDT 20,000 to BDT 30,000. Price of flats in

Baridhara is close to Gulshan. If we consider companies, non-branded

companies sell their flat in BDT15,000- BDT 16,000 per sqft. but branded

companies like BIT, Assurance, Concord, Domino sell their flat in upper

range. Land contracts are mainly in favor of land owners which is 60-40

percent. 60% of the flats go to land owners and 40% goes to Developers.

Also the signing amounts in these areas are higher than other areas. Thats

why flats in these areas are larger in size to cover up the cost of

constructions and signing amount. Flats in Banani and Mohakhali DOHS

are sold even at higher price which is more than 25,000 per sqft. As these

areas are very well planned and all public facilities are available properly

in these regions.(Dhakaflats, 2014)

2. Dhanmmondi, Kalabagan, Uttara, Mohammadpur: Flat price in these

areas has huge variations. In Dhanmmondi and Kalabagan price is BDT

15,000 to BDT 20,000. In Mohammadpur it is BDT 7,000 to BDT 8,000.

In Uttara price range from BDT 8,000 to BDT 10,000. The main reason ofthis variation is because of location of the land. In the main part of

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Dhanmmondi, Kalabagan and Mohammadpur flats are sold at higher price.

But at the boundary of these areas flats are relatively cheap. Average ftat

sizes in these areas are 1250sqft. -1750sqft. In the main part of the areas

land contracts are in 60-40 but in the outskirts it is 50-50. Same thing for

Uttara the sectors (3,7,6,4,1 etc.) which are close to highway is higher

priced. But sectors which are in backward place like 15, 14, 11 etc. are

relatively cheap. (Dhakaflats, 2014)

3. Malibag, Mogbazar, Badda, Kakrail: Mogbazar and Malibag are central

area of Dhaka. Still flat price in these areas are lower compare to

otheradjacent areas. Flat price in these areas are range from BDT 10,000 to

BDT 15,000. The reason behind this low price is unplanned development.

These areas have very poor public and utility service. Also communication

of this part of the city is very difficult and time consuming. Flat price in

Badda is around BDT 6,000 in average. (Dhakaflats, 2014)

4. Mirpur: Mirpur is one of the old parts of Dhaka city. Butthese area was

never properly developed. Most of the time land contract around this part

goes for 60-40 percent in developers favor. Sometime it is 50-50. Price

range is BDT 4,000 to BDT 5,000. Flat price in Mirpur DOHS is a little bit

higher which BDT 5,000 to BDT 7,000 is. But still it is very low against

other DOHS. Mainly because this it is new, not yet developed. It also

shares the same problem with Mirpur main part which is bad

communication. Another factor is it doesnt share the same image of high

class as other DOHS have. (Dhakaflats, 2014)

Other than these areas we have Old part of the town, Gazipur, Savar, Ashulia etc.

developers are not that much interested to go in the old part. As the lands are very

congested and narrow roads. Moreover with time, people are moving towards the

new part of the town. In Gazipur flat price is BDT 3,500 to BDT 4,500. But till

now only two companies have successfully handed over the flats. Still the market

is growing, but popular developers have not shown themselves in this market yet.

(Uddin, 2014)

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2.5Decision making process of Real Estate

It is vital for a company to know about buyers decision making process, because

they have to know at which point they have to or they can influence the decision

making for a successful marketing plan. As most of the buyer does not well aware

about the technical know-how of construction of building so it is very important

for a company get buyers mind share. To get the mind share the companies has to

properly communicate the projects and its facilities properly so that the

communication can reach they buyer accordingly.Knowing the buyers decision

making process will give a company some competitive advantage as they will

know the best point of penetration in the buyers mind.

As we know buying decision making process is simple five steps. It starts withidentifying the problem then gathering information, alternatives evaluation,

making purchased decision and finally post purchase behavior. But with the time

the buying decision making process has been adjusted with different industry

according to that industrys characteristics. So if we take the real estate industry

buying decision making process can be stripped down to seven steps. These steps

are-

1. Defining the problem

2. Developing criteria

3. Available alternatives

4. Evaluation of alternatives

5. Selecting the final one

6. Implementation

7.

Post Purchase Behavior

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1. Defining the problem: First step is pretty simple, they define their problem. In

this stage buyer try to find answer to some of their questions like what is missing,

what they want, why they want it etc. Actually firstly they just shape up their

thinking with specific objectives. Then they finally come to the point when they

know what they want. They need a place for their residence. It could be rented

house, own house, land or flat. After some further evaluation they determine

whether they want to buy or just rent depending their financial condition, social

class etc. only those people who decide to buy their own residence are the target

customer segment of the real estate industry. If they want to buy their residence

they left out with only three options, they could buy a house with the land or they

can buy a land and build the house on it and lastly they could just buy a flat. Soto

fulfill their demand for a house can be met with any of these here options-

A. Buy house:in this option a buyer purchase a house with the land. Seller could

be both an owner of the house or a realtor. In Bangladesh, generally these

kinds of deals are done by the house owner as we dont have that much

professional realtor in the industry. It has some positive sides, as the buyer

purchase a ready house, they can start to live right away with a little repairing

in some cases. They dont have to go through the hassle of building a house

which involves getting permission and design approval from City Corporation,

managing work force ( engineers, architects, raw materials suppliers, daily

workers etc.also if they owner does not have any prior experience on

construction, it is impossible to ensure the quality. Then again it has a major

drawback. Buying a house doesnt provide flexible financial options.

Normally its one-time payment or at highest a two installment payment. A

house is very expensive comparing land or flat.

B.

Buy Plot: There are some companies who sell land. These companies

normally buy low lands or small amount of at a time from a specific location.

Then divide the whole area in to well-designed plots and sell them. Though

this option provided less expense, building house can be monitored by the

owner himself. But hey has to go through the hassle of managing and

monitoring the workforce to ensure desired quality. It also provides financial

support better that previous option. Some real estate firms develop lands and

sell those developed lands to the buyers.

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C. Buy Apartment/Flat: Flat as widely said in Bangladesh rather than apartment

is the most common solution to the buyers of real estate products due to

different reasons. First buyers get the flexibilities in financing as they can pay

the money by installments. Sometimes real estate firms help the buyers to get

access to the financing services available. Again as money is paid according to

the predefined schedules, one can plan long term which is helpful to

accommodate any changes .Secondly here one gets ready house to live in. So

one does not need to handle with the complexities with the stakeholders.

Thirdly buyers have voice over the construction of houses. Buyers can specify

what they want in their houses and real estate firms make the adjustments

according to the preferences of buyers. But buyers might have to pay in case

they want something extra or something that was not specified in the initial

contract.

2. Developing alternatives

Now they have decided to buy a flat/apartment. Now they look for options. They

have decided the preferred location and size of the flat. Buyers use different

criteria they think relevant either consciously or unconsciously to evaluate thealternatives. They gather information about the active companies. Information can

be gathered from different sources like friends & family, newspaper, advertising,

word of mouth etc. buyers compare between companies based on these

information. They form up some criteria to evaluate these options like price,

location, good will, previous projects of the company, quality of construction,

utilities service communication facilities, surrounding areas, availability of public

services, financing options etc. For high class society a flat is kind of a symbol of

their social class, so exterior and interior design is a very considerable part for

them. Emotion is one of the major factors to consider here. By culture

Bangladeshis are emotional and emotion is pretty much attached to the real estate

purchase decision too. Buyers treat this kind of buying as a long term issue and

they normally perceive that they do it for their next generations. Lastly they rank

their preference of about these factors based on their importance to them.

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3. Evaluating alternatives

Buyers have all the relevant information by this time. Now they judge the

alternatives against the criteria set they did develop earlier. Sometimes buyers

put weights on the individual criteria to ensure the proper role of criteria in the

decision making process without violating the preference of the buyers. In most

cases assignment of weights is unconscious or informal in Bangladesh. Buyers

just know and keep in mind what they want to have and how much they are ready

to adjust in respect to different criteria. Experts mark this aspect normal in

Bangladesh and they say its not that complicated. In their opinions buyers put

most of their emphasis on costs and therefore they dont bother as long as they are

convinced that quality/standard well represent the costs.

So costs benefits analysis comes to the scenario. But in Bangladesh its not

common except the commercial real estate products. In case of residential real

estate products, buyers buy them not with the intention of making profits from

them. Rather they buy them in order to live and emotion is pretty much attached to

it. So they dont go for the cost benefit analysis normally. But buyers are careful

to be sure that the property deserves the particular amount of investment

considering the properties of it and the market condition.

4. Purchase Decision

In this stage buyers pick up the one they think goes best with their intention. In the

previous stage buyers get a scorecard that represents the worthiness of the possible

alternatives to satisfy a particular need. Based on that scorecard buyers select the

one with the wish to implement. As a general rule, buyers select the one that

produce the highest score. But reality becomes different when buyers add the

qualitative judgment with the quantitative scorecard. Like the previous steps

emotion once again plays a vital role here.

5. Post Purchase Behavior

Buyers are almost done in the process of buying house. They have already decided

about category and alternative they do want. So they contact the supplier and

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make the contracts that explain among others total amount to pay, the payment

schedules, attributes of the houses, delivery date, quality aspects etc.

One has to be very much careful when one make contracts to be safe from any

kind of frauds that might arise later on. It has been claimed that frauds in the

Bangladesh market has been rising in the last couple of years.

After the delivery of the houses one gets the chance to compare the promised

features with the delivered features. Any discrepancies can be settled by proper

communication with the real estate firms.

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METHODOLOGY

3.1 Research Design

The suitable type of research design for this study is Ex Post Facto design

(Psychwiki, 2010) where the subtype used is used to accomplish the research

objectives. The fundamental objective of survey design is to search for

relationship between variables. It generally depends upon the application of a

well-constructed questionnaire, which is applied in collection of data from the

pertinent unit of analysis under study, generally, an individual. This research is a

Descriptive one along with some characteristics of Normative Research. The

report mainly focuses on the development of the real estate market in Bangladesh

while it also talks about the current market functions and the effects of the real

estate business in Dhaka, Gazipur and Narayangonj of Bangladesh. Also it depicts

the possibilities about the times to come.

3.2 Sources of Data

Both Primary and Secondary data have been used for preparing the report.

Primary Data: Primary data comes from interviewing people through

questionnaire and the informal interviews with the real estate professionals

and experts in Bangladesh. Also personal observation, living, and

discussion with the professionals are other main sources of primary data.

Secondary Data: Secondary data is collected from different published

sources like research reports, Bangladesh Bureau of Statistics, real estate

publications and different literatures on real estate business etc.

3.3 Sample Selection

The non-probability sampling was used and the sampling method used is

convenience sampling. Convenience sampling is the most familiar form of

sampling design in social science research and provides researchers with an

acceptable database to use statistical inference techniques. This approach to

sampling involves collecting information from members of the population who are

conveniently available to provide this information (Sekaran, 1992). In this survey,

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non-probabilistic sampling method was used because the complete sampling

frame for the target population was not available that is necessary to conduct the

usual probabilistic sampling techniques. Besides, limited time and budget also

guided the researchers to go for non-probabilistic methods. The main focus in

selecting sample was on people who have a monthly income between BDT 50,000

to BDT 1,50,000. As people with a monthly income below BDT 50,000 are not

the focused customers of real estate industry.

Moreover, the sample size was large enough, i.e. 300, to ensure

representativeness.

Sampling Frame: Several sampling frames based on profession and income level

were used.

Basis Sample frame

Professions (Govt./ Business /

Private)

Doctor, Engineer, Banker, Businessman,

Lawyer, Service holder, and Others

Income Level (Tk./ Month) 50,000 or below;50,000-1,00,000;1,00,000-

1,50,000;1,50,000-2,00,000;2,00,000 or above

Sampling Element: Individual households from existing and potential clients

Sampling Unit: Individuals from existing and potential clients

Sample Size: 300, which is sufficiently large for this sort of surveys

Channel Of Approach: Both physical survey and telephone methods

3.4 Data Collection

The main instrument for data collection was the questionnaire. Formal

questionnaire (added in the appendix) is used to collect data from the consumers

through face to face interview with a simple random sampling. In case of experts

and real estate employees the medium is informal interview.

3.5 Data Analysis

Data is mainly analyzed from customers perspective. These analyzed data will be

disseminated among the related parties i.e. real estate firms, real estate

economists, universities etc., to have a knowledge spillovers affect. Quantitative

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analysis was done using statistical and mathematical tools such as Statistical

Package for Social Science (SPSS) and MS Excel. Useful and reliable models

such as Univarate Analysis, Bivariate Analysis; Multivariate techniques were

developed to analyze the data. The data were mainly analyzed by using cross

tabulation, correlations, and mean of the variables. All the variables were

measured using five point Likert Scale with level 1= Strongly Disagree,

2=Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree. Data have been analyzed

using Correlation, Cross tabulation as well as Descriptive Statistical Techniques.

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ANALYSIS&FINDINGS

4.1 Demographic Analysis

4.1.1 Demographic Analysis based on location:

Figure: Demographic analysis of Location.

Here from this pie chart it can be deduced that 30% respondents are from

Malibagh-Mogbazar, 22% live in Mirpur and 18% are from Uttara. Only 4%

people are from the old town or Puran Dhaka.

Location

Gulshan

Uttara

Malibag

Mirpur

Old town

Gazipur

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4.1.2 Demographic Analysis based on Age of participant:

Figure: Demographic analysis based on Age

Here the pie chart shows that most of the respondents (44%) are aged between 45

and 54. Also a big portion which is 28% people is 35 to 44 years. 25-34 range has

the least portion of respondents.

8%

28%

44%

20%

Age

25 - 34

35 - 44

45 - 54

55 and above

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4.1.3. Demographic analysis Based on Occupation:

Figure: Analysis based on Occupation

Business people are the highest portion of people who participated in the research (44%).

Also 34% people are related with Private service and 16% are engaged in Government

Service.

44%

16%

34%

6%

Occupation

Business

Government Service

Private Sector

Others

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4.1.4 Demographic Analysis Based on Salary of Participant

Figure: Demographic Analysis Based on Salary of Participant

Here the highest 48% peoples income range between 1,00,000-1,50,000. Also

24% has the income of 50,000-1,00,000.

4.2 Statistical Analysis:

Cross-tabulation is one of the most useful analytical tools and is a main-stay of the market research

industry. One estimate is that single variable frequency analysis and cross-tabulation analysis

account for more than 90% of all research analyses. (Qualtrics, 2013)

Cross-tabulation analysis, also known as contingency table analysis, is most often used to analyze

categorical (nominal measurement scale) data. A cross-tabulation is a two (or more) dimensional

table that records the number (frequency) of respondents that have the specific characteristics

described in the cells of the table. Cross-tabulation tables provide a wealth of information about

the relationship between the variables.

6%

24%

48%

14%

8%

Salary of the participant

Below 50,000

50,000-1,00,000

1,00,000-1,50,000

1,50,000-2,00,000

Above 2,00,000

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4.2.1 Cross-tabulation Analysis of Age with Flat Size:

Figure: Age and Flat Size Cross Tabulation

Here from this cross tabulation it can be identified that 25-34 age range are mostly

preferring the flat size which are below than 1000 sq. ft. But the participants from35-44 age range are mostly going for larger apartments than the 25-34 range. They

choose bigger apartments which are like 1200-1500 sq. ft. 60 respondents from

45-54 age groups prefer larger apartments which are 1500-1800 sq. ft.; also 24

respondents are choosing even bigger, 1800-2000 sq. ft. Big portion of the 55-

Abobe age group possess apartments which are 1800-2000 sq. ft.

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4.2.2 Cross-tabulation Analysis of Occupation with Preference of Flat and

Land:

Figure: Occupation and Preference of Land/Flat Cross-tabulation

Cross-tabulation Analysis of Occupation with Preference of Flat and Land shows

that most business people want to possess land over Flat or Apartment. But

Respondents who are engaged with government service has a steady limited

income so most of them (48 respondents) own Flat or Apartments. 78 respondents

who are doing private service have their own apartment whether 24 of them own

their own property.

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4.2.3 Cross-tabulation Analysis of Occupation with Financing Option:

Figure: OccupationFinancing Option Cross-tabulation

For financing, big portion of the Business people (72 respondents) prefer loan for

5 year with moderate interest and medium installments. The majority of

Government service holder people (30 respondents) also prefer this option, but 18

of them choose 15-20 year with high interest and low installments. On the other

hand the Private Service people mostly go with the business people in option of 5

year with moderate interest and medium installments.

4.2.4 Frequency analysis of Governing Factor:

From the table below, it can be easily inferred that people consider price and

scarcity of living space as the main governing factor of real estate market. 30%

respondents selected price and 28% selected scarcity of living space as the main

governing factor. In the next position are both energy crisis and Quality of work.

In their opinion Honesty of the firm is the least important governing factor for the

real estate market.

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Frequency Percent Valid Percent

Cumulative

Percent

Valid Government Regulation 18 6.0 6.0 6.0

Energy

Availability/crisis48 16.0 16.0 22.0

Price 90 30.0 30.0 52.0

Quality of work 48 16.0 16.0 68.0

Honesty of the firms 12 4.0 4.0 72.0

Scarcity of living space 84 28.0 28.0 100.0

Total 300 100.0 100.0

Table: Frequency Analysis of Governing Factor

4.2.5 Frequency analysis of Preferable Location:

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Baridhara, Gulshan,

Banani36 12.0 12.0 12.0

DOHS, Uttara,

Dhanmondi150 50.0 50.0 62.0

Malibagh, Kalabagan,

Kakrail84 28.0 28.0 90.0

Mirpur 24 8.0 8.0 98.0

Tongi, Gazipur 6 2.0 2.0 100.0

Total 300 100.0 100.0

Table: Frequency Analysis of Preferable Location

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The most popular location among the respondents is DOHS-Uttara-Dhanmondi.

50% respondents want to buy their property in these places. After that, 28%

people choose Malibagh-Kalabagan-Kakrail areas. The least only 2% are selecting

Tongi-Gazipur.

4.2.6 Mean Calculation of Purchase Factors:

Overall quality Mean N Std. Deviation

Unimportant 3.00 30 1.287

Normal 2.38 96 .700

Important 1.93 90 1.188

Very Important 1.57 84 1.185

Total 2.08 300 1.148

Table: Mean of Overall Quality

Luxury Mean N Std. Deviation

Very Unimportant 2.57 42 .501

Unimportant 2.55 66 .502

Normal 2.50 72 1.199

Important 2.00 48 1.750

Very Important 1.00 72 .000

Total 2.08 300 1.148

Table: Mean of Luxury

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Space Mean N Std. Deviation


Normal 2.33 108 1.160

Important 1.50 96 .871


Total 2.08 300 1.148

Table: Mean of Space

Location Mean N Std. Deviation

Unimportant 2.80 30 1.186

Normal 2.37 114 1.041

Important 1.83 138 1.133


Total 2.08 300 1.148

Table: Mean of Location

Company Mean N Std. Deviation


Normal 2.44 108 1.390

Important 1.59 102 .916


Total 2.08 300 1.148

Table: Mean of Company

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Ease of financing like

installment payment Mean N Std. Deviation

Very Unimportant 1.00 42 .000


Normal 2.50 108 1.264

Important 3.00 60 .781


Total 2.08 300 1.148

Table: Mean of Installment Payment

Facilities of the

property Mean N Std. Deviation

Normal 3.00 30 .000

Important 1.96 168 1.326


Total 2.08 300 1.148

Table: Mean of Facilities of Property

Exterior design Mean N Std. Deviation


Normal 1.80 120 .751

Important 2.47 114 1.434


Total 2.08 300 1.148

Table: Mean of Exterior Design

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Interior design Mean N Std. Deviation


Normal 2.53 90 1.416

Important 1.60 120 .864

Very Important 1.89 54 1.003

Total 2.08 300 1.148

Table: Mean of Interior Design

From the above tables, we can see the importance of these factors for purchasers

in buying decision making process. The factors we are considering are as below-

1.

Overall quality

2. Luxury of the flat

3. Space of the flat

4.

Location of the Flat

5. Brand value of the company

6. Ease of financing options

7.

Utility facilities and other services (Parking, Guard, Lift etc.)

8. Exterior design of the building

9. Interior design of the building.

According to the 300 respondents, they are mostly indifferent about the Space of

the flat, Brand value of the company, Ease of financing, exterior design. But

between these factors, exterior design and Companys brand value are more

important to them as there are 108 people for companys brand value and 114people for exterior design think these are important. But if we when we compare

exterior designs importance with interior designs importance we can see than to

them interior design is more important than exterior design. 120 respondents think

Interior design in important but only 90 are indifferent about it. For the

respondents overall facility of a flat is very important to them. The figure shows

that 168 respondents think it as important and 102 respondents consider it as very

important. Quality, space, brand value of the company and Exterior design are

skewed from normal towards importance. But ease of financing is skewed from

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normal towards unimportant. In case of Luxury responses are skewed almost

evenly toward both sides. 72 people think it as very important at the same time

another 72 thinks it as normal and 66 thinks it as unimportant.

With the responses taken from the respondents, their preference can be analysis

against occupation. The study shows peoples preference can be different based on

their occupation. Analysis shows that business people put more importance in

overall quality and luxury of the flat than government service holder or private

service holders. According to them overall quality is neither important nor

unimportant. Business people think sufficient space in the flat in very important

but according to service holders it is unimportant. Everybody wants better location

for their flat. Most of them are indifferent about the location but some of them

want to be in high class society. The only factor the business people think is

unimportant is ease of financing. But for other profession it is very important that

they can pay for their apartments easily and at a very low interest rate. In case of

utility facility, exterior design and interior design business people put high

importance but people from other profession put positively skewed importance.

Some thinks it is important, some think it is average.

4.2.7 Frequency Analysis of Important Factors duringSite Visit:

Frequency Percent Valid Percent

Cumulative

Percent

Valid Quality of the material used 126 42.0 42.0 42.0

Expertise of the construction crew 60 20.0 20.0 62.0

Suitability of the land 18 6.0 6.0 68.0

Compliance with regulations 72 24.0 24.0 92.0

Design of the building 24 8.0 8.0 100.0

Total 300 100.0 100.0

Table: Frequency Analysis of important factors during site visit

From this table it can be deduced that the majority portion which is 42% are

concerned about the quality of material used to build the buildings. Also 24% of

the respondents are looking for compliance with regulations. Also 20% of people

are meticulous about the expertise of the construction crew.

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4.2.8 Correlation of Satisfaction Factors:

Here is the correlation table of Overall Quality with other satisfaction factors. The

detailed table has been added to Appendix sector.

Particulars Correlation with Overall

Quality

Rank

Luxury .416 1

Space .317 3

Location .103 5

Company .376 2

Ease of Finance -.395 8

Facilities of the property -.237 7

Exterior Design .063 6

Interior Design .196 4

Table: Correlation table

The Pearson Correlation value ranges from -1 to +1 with negative numbers

representing a negative correlation (as one variable increases, the other variable

decreases) and positive correlation (as one variable increases, the other also

increases). The closer the value is to -1 or +1, the stronger the association is

between the variables.

It can be seen from the table that luxury, space, location, company, exterior and

interior design are positively correlated with overall Quality. Ease of finance and

facilities of the property are negatively correlated with overall quality. The

importance and impact of these factors have shown in rank column of the table.

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4.2.9 Correlation of Satisfaction Factors with real estate company

performance:

Particulars Correlation with all satisfaction

Factors

Rank

Honesty about Size,

facilities etc.

.624 2

Proper hand over due date .597 3

Promised Construction

quality

.442 4

Relative pricing against

competitors

.399 6

Financing Options .651 1

Proper utility services .407 5

Design (Interior &

Exterior)

.300 7

Figure: Correlation of satisfaction factors

From the table we can see that all the feedback against the Real Estate Company

and satisfaction factors have positive correlation. It can be interpreted as the Real

Estate Companies of Bangladesh are fulfilling all requirements that the consumers

believe are important.

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4.3Findings:

From the analysis, some major findings were noticed. The findings are-

People in the age group 35-54 prefer 1200-1800 square feet flat. But he

main customers of flat size more than 1800 square feet flat are people who

are older than 55 years of age.

Mostly business man prefers land over flat rest of the people like to buy

flats.

More or less people from all profession choose 5 years financing option

with medium interest and medium installment.

People think price and scarcity of living space are the main governing

factors of real estate industry.

Almost 50% of the respondents wanted to relocate themselves in DOHS,

Uttara, Dhanmondi. The second preferable locations are Malibagh,

Kalabagan, Kakrail.

Customers prefer Better Interior and exterior design, space of the flat, Ease

of financing over raw material quality, location of the flat.

During construction site visit customers try to ensure the raw material

quality and compliance with the regulations.

Correlation of the satisfaction factors shows that people are satisfied with

companys honesty, financing options.

Business people prefer better quality and luxury of the flat whereas service

holders want better financing options and utility facilities.

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CONCLUSION

In general if we look at the real estate market, it is very visible that the customers

are not that much satisfied with what they are getting. In some cases they are not

even getting what they want. But this research portrays a different picture.

Customers think that the pricing and scarcity of living space are the main

governing factor of the real estate industry of Bangladesh. It was thought that

customers will be more concern about the material quality, flats space, location

and easy financing options. But the study identifies that the customers are more

concern about interior and exterior design and brand value of the company than

any of those. According to their feedback they would like to relocate themselves

in Uttara, Dhanmmonndi, Malibag. In case of their location preference, they havemixed opinion. Most of the respondents want to be in Uttara as because it is

within Dhaka, have all the facilities and much more organized. In their opinion

Uttara is within Dhaka but without the problems of Dhaka. Some of them want to

live in Dhanmmondi and DOHS (Mohakhali & Baridhara) just because of the high

status of these areas. People try not to be in Mirpur area. When the respondents

are asked whether they are happy with their developers or not, they say they are

not fully satisfied. According to them their developers are not fully honest about

their apartments and its facilities. But when their responses were taken about their

satisfaction level, their responses depict another view. Their responses say they

are satisfied with their developers. According to the respondents luxury,

companys brand value and space are very much related with overall quality of the

flat or apartment. But Ease of financing and utilities facility has comparatively

lower correlation with overall quality. Customers are very satisfied with their

entitled financing options. Also they think companys honest about flat space and

other facilities and handover the flats in due time. But to them pricing of flats is

very poor as well as the exterior and interior design. During the construction of a

apartment building, they consider raw material quality, construction crews

expertise and compliance with government regulation as important factors. There

is still some scope for further study. This study was mostly to determine

customers attitude based on their profession. People attitude and expectation

about the real estate offering and companies can also be measured based on their

origin, social status, income level, family size (number of family members) etc.

Each of these factors can provide the companies even more inside in the

customers expectation about their real estate offerings. But it is suggested that the

further research should have more diversified sampling frame in case ofdemography.

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REFERENCES

Sekaran, U. (1992) Research Method of Business. New York: John Wiley and

Sons. pp. 87-92

Psychwiki.com (2010) What is ex post facto design? [Online] Available From:

http://www.psychwiki.com/wiki/What_is_ex_post_facto_design%3F

[Accessed on 12 January 2014] .

Dewri, L. V. (2012) A Comprehensive Study on the Real Estate Sector of

Bangladesh [handout] Real Estate and Housing Association of Bangladesh

(REHAB) pp. 25-32.

Uddin, M. F. (2014) Face to Face Interview on Real Estate Market of greater

Dhaka with A. Pervez, 28thJanuary.

Qualtrics.com (2013) Cross Tabulation Analysis [Online] Available From:

http://qualtrics.com/wp-content/uploads/2013/05/Cross-Tabulation-

Theory.pdf. [Accessed on 15thJanuary 2014].

Wikipedia (2014) Demographics of Bangladesh [Online] Available From:

http://en.wikipedia.org/wiki/Demographics_of_Bangladesh [Accessed on

17th January 2014].

DhakaFlats.com (2014) Price range and flat size of Dhaka [Online] Available

From: http://dhakaflats.com. [Accessed on 10thJanuary 2014].

Bangladesh. BANGLADESH BUREAU OF STATISTICS, STATISTICS AND

INFORMATICS DIVISION (2011) Population and Housing Census 2011

Bangladesh, pp. 19-23.

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APPENDIX

Survey questionnaire for Exploring Factors Affect Customers

Buying Behavior and Satisfaction: A Study on Real Estate FirmsOperating in the Greater Dhaka Region

Dear Respondent:

Good day, I am requesting your kind co-operation to complete my thesis work. I

am doing as an academic activity. I am a student of Business administration

Discipline of Khulna University. I am doing thesis on the following topic:

Exploring Factors Affect Customers Buying Behavior and Satisfaction: A

Study on Real Estate Firms Operating in the Grater Dhaka Region

Please fill up or put a tick () mark appropriately for the following questions.

Thanks a lot in advance.

Part 1: Personal Information

1. Name:_________________________________________________________

2. Gender:

Male Female

3. Current Address:

Baridhara, Gulshan, Banani DOHS, Uttara, Dhanmondi

Kalabagan

Malibagh,Mogbazar , Kakrail Mirpur

Old Town of the City Savar, Ashulia

Tongi , Gazipur

4. Age: 25-34 35-44 45-54 55 and above

5. Marital Status: Married Unmarried Widowed Divorced

6. Occupation:

Business Government service

Private Service (RMG) Teacher Private Service (MNC) Private Service (Others)

Other Bank

Please state the nature of your occupation if it is not covered in above

description

___________________________________________________

7. Educational Background:

Masters Bachelor (Hons.) Bachelor (Pass.) H.S.C.

S.S.C

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15. What is your opinion about these factors importance in purchasing a

flat/apartment?

Factor Very

Unimportant

Unimportant Indifferent Important Very

Important

Overall quality

LuxurySpace

Location

Brand Value of the

company

Ease of financing

Facilities of the property

Exterior design

Interior design

16. What size of flat is most preferable size for you to purchase?

Below 1000 sq. ft. 1000-1200 sq. ft. 1200-1500 sq.ft.

1500-1800 sq. ft 1800-2000 sq. ft above 2000

sq. ft.

17. Though which source you want to finance your purchase?

Real estate firm Bank Non-Banking financial org.

Self

18. What is most preferable financing option for your purchase?3 month with no/low interest and high installment

5 year with moderate interest and medium installments

15-20 year with high interest and low installments

19. Do you plan to visit the construction site before purchase?

Yes No

20. If yes, than what will you mostly look for during your visit?

Quality of the material used Expertise of the construction crew

Suitability of the land Compliance with regulations

Design of the building

21(a). Did the visit influence your purchase decision?

Yes No Not

Applicable

21(b). If yes, to what extend did it influenced?

To a large extend Little bit Not at all

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Part 4: Satisfaction

22. Do you own a flat/apartment?

Yes No

23. Are you satisfied with your purchase?

Yes No

24. What is your feedback about your developer company?

Very good Good Average Bad Very bad

Honesty about Size, facilities etc.

Proper hand over due date

Promised Construction quality

Relative pricing against competitors

Financing Options

Proper utility services

Design (Interior & Exterior)

25. If you need another flat in future, would you considering buy it from the same

developer?

Yes No

26. What do you think about your company?

Its just a profit concern It cares for customers like customization

It is doing business simply by building shelters

It performs social responsibility It solves the residential problems of Dhaka city

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TABLES ANDFIGURES

Occupation * What is most preferable financing option for your purchase? Cross

tabulation

Count

What is most preferable financing option

for your purchase?

Total

3 month with

no/low

interest and

high

installment

5 year with

moderate

interest and

medium

installments

15-20 year

with high

interest and

low

installments

Occupation Business 24 72 36 132

Governmentservice

0 30 18 48

Private Service 0 84 18 102

Others 6 12 0 18

Total 30 198 72 300

Table: Occupation * Overall quality Crosstabulation

Count

Overall quality

TotalUnimportant Normal Important

Very

Important

Occupation Business 6 12 48 66 132

Government

service0 36 12 0 48

Private Service 18 48 24 12 102Others 6 0 6 6 18

Total 30 96 90 84 300

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Table: Occupation * Luxury Crosstabulation

Count

Luxury

TotalVery

UnimportantUnimporta

nt Normal ImportantVery

Important

Occupation Business 0 0 24 36 72 132

Government

service18 30 0 0 0 48

Private

Service24 36 42 0 0 102

Others 0 0 6 12 0 18

Total 42 66 72 48 72 300

Table: Occupation * Space Crosstabulation

Count

Space


Very

Important


Government

service0 48 0 0 48

Private Service 36 24 24 18 102

Others 6 12 0 0 18

Total 42 108 96 54 300

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Table: Occupation * Location Crosstabulation

Count

Location


Very

Important


Government

service18 24 6 0 48


Others 6 6 6 0 18

Total 30 114 138 18 300

Table: Occupation * Company Crosstabulation

Count

Company


Very

Important


Government

service24 24 0 0 48


Others 0 18 0 0 18

Total 66 108 102 24 300

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Table: Occupation * Ease of financing like installment payment Crosstabulation

Count

Ease of financing like installment payment

Total

Very

Unimportant

Unimportan

t Normal Important

Very

Important

Business

Government

service

Private

Service

Others

42 54 36 0 0 132

0 6 6 12 24 48

0 6 54 42 0 102

0 0 12 6 0 18

Total 42 66 108 60 24 300

Table: Occupation * Facilities of the property Crosstabulation

Count

Facilities of the property

TotalNormal Important Very Important

Occupation Business 0 96 36 132

Government service 0 18 30 48Private Service 30 36 36 102

Others 0 18 0 18

Total 30 168 102 300

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Table: Occupation * Exterior design Crosstabulation

Count

Exterior design


Very

Important


Government

service0 48 0 0 48


Others 0 0 18 0 18

Total 36 120 114 30 300

Table: Occupation * Interior design Crosstabulation

Count

Interior design


Very

Important


Government

service6 30 12 0 48


Others 0 18 0 0 18

Total 36 90 120 54 300

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